South Korea’s leading battery manufacturers achieved record-breaking investments in research and development (R&D) in 2024, despite a slowdown in global electric vehicle (EV) sales, according to industry sources.
LG Energy Solution (LGES), Samsung SDI, and SK On collectively invested over 2.5 trillion won (approximately $1.7 billion) in R&D, surpassing the previous year’s 2.47 trillion won. This preemptive approach is seen as preparation for an anticipated recovery in battery demand, as the EV market transitions through a challenging phase referred to as the ‘EV chasm.’
LGES, South Korea’s top battery maker, reportedly invested over 1.1 trillion won in next-generation battery development, marking a 6% increase from the 1.04 trillion won spent in 2023, according to Yonhap News Agency. Similarly, Samsung SDI’s R&D investment for 2024 is estimated to have exceeded 1.14 trillion won, surpassing its previous year’s expenditure. SK On is believed to have maintained its investment level at around 300.6 billion won, matching its 2023 spending.
South Korea’s Ministry of Land, Infrastructure and Transport reported a significant rise in eco-friendly vehicle adoption. The total number of registered vehicles in the country surpassed 26 million units by the end of December 2024, a 1.3% increase from the previous year.
Eco-friendly vehicles, which include electric, hydrogen, and hybrid models, accounted for over 10% of all registered vehicles for the first time. Their total reached 2.75 million units, an increase of 626,000 from 2023. Hybrid vehicles contributed significantly to this growth, helping the share of eco-friendly cars rise by 2.2 percentage points to 10.4%.
Gasoline and diesel vehicles continued to dominate, with 12.4 million and 9.1 million units, respectively. However, internal combustion engine vehicles declined for the second consecutive year, falling 1.2% to 23.37 million units.
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